Ask anyone for advice on flipping commercial real estate, and they will either tell you that you're crazy for considering it, or that you are potentially buying a gold mine. The economy hasn't been the best lately, which has reduced demand. This leads to many interesting investment opportunities.
Flipping commercial real estate demands that you have done market research. Contact business owners in the area and ask them what they are paying on their lease, if they are happy, and whether or not they'd be interested in a specific location. Sometimes you might even be able to make a sale before you purchase the property! Don't give up if business owners don't want to share- some will eventually.
If the property is zoned for both residential and commercial activity, you have a better chance of selling. Those who are willing to start their new business will sometimes live in or above the leased spaced to save money. Many downtown areas of old cities have stores that have apartments on the top floor: this is the same business practice.
Talk the real estate owner down as much as you can, and don't feel shame in doing so. The market is tough, and you both should be aware that making a profit from the sale is going to mean tough work. Offer to give a price at least 10% less than what they are asking as a start for bargaining. Also note any damages to the property to add to the deduction, or try to write off any handling fees in the purchase.
The owner of the commercial property has probably tried to lease the property. Ask if he or she has, and why that project failed. If information is divulged you can get valuable advice on how to fix the property or find a reason to talk the price point down. If no attempt has been made to lease the property, you should instead put efforts into finding out what the current probability of finding a tenant is.
If you intend on selling the land right after buying it, you have an even harder task to complete. Selling at a higher price requires that you improve on the property, or at least keep it until interest increases. The problem with waiting is that you will have to make payments on the property in the meantime, and with no particular boon in the real estate industry in sight, you could be losing money on the situation.
In Conclusion
Real estate is a dangerous investment gamble. Make sure all of your bases are covered, and start talking to commercial real estate brokers. They will aid you in finding a nice property, bargain with the owner, and overall find a better deal than you would be able to.
Flipping commercial real estate demands that you have done market research. Contact business owners in the area and ask them what they are paying on their lease, if they are happy, and whether or not they'd be interested in a specific location. Sometimes you might even be able to make a sale before you purchase the property! Don't give up if business owners don't want to share- some will eventually.
If the property is zoned for both residential and commercial activity, you have a better chance of selling. Those who are willing to start their new business will sometimes live in or above the leased spaced to save money. Many downtown areas of old cities have stores that have apartments on the top floor: this is the same business practice.
Talk the real estate owner down as much as you can, and don't feel shame in doing so. The market is tough, and you both should be aware that making a profit from the sale is going to mean tough work. Offer to give a price at least 10% less than what they are asking as a start for bargaining. Also note any damages to the property to add to the deduction, or try to write off any handling fees in the purchase.
The owner of the commercial property has probably tried to lease the property. Ask if he or she has, and why that project failed. If information is divulged you can get valuable advice on how to fix the property or find a reason to talk the price point down. If no attempt has been made to lease the property, you should instead put efforts into finding out what the current probability of finding a tenant is.
If you intend on selling the land right after buying it, you have an even harder task to complete. Selling at a higher price requires that you improve on the property, or at least keep it until interest increases. The problem with waiting is that you will have to make payments on the property in the meantime, and with no particular boon in the real estate industry in sight, you could be losing money on the situation.
In Conclusion
Real estate is a dangerous investment gamble. Make sure all of your bases are covered, and start talking to commercial real estate brokers. They will aid you in finding a nice property, bargain with the owner, and overall find a better deal than you would be able to.
Advice On Flipping A Piece Of Commercial Land